Central Bank: No preference for stability in the exchange rate

The Central Bank of Costa Rica shook off criticisms in recent days about the increase in the exchange rate, and noted that there is no preference for stability in the exchange rate.

According to a comment made by Eduardo Prado, Manager of the Central Bank, in the managed float regime (which governs the exchange rate today), there are tendencies of both appreciation and depreciation of the national currency on a day-to-day basis.

From February 2, 2015, the BCCR moved to a managed float regime, in which the Bank decides the moment that it will intervene in the foreign exchange market.

Prado indicated that the state institution is never prioritizing the stability of the currency in reference to the North American dollar.

“It is understandable that some officials believe the volatility should be greater, and others think it should be smaller, but what is not correct is to affirm that the BCCR gives priority to the stability of the exchange rate at any cost,” he added.

Prado said that it is not surprising that some sectors are not compliant with the behavior of the exchange rate.

“The purchase of foreign currency and the moderation of appreciation were unquestioned by those who today make accusations of the BCCR. Congruence would indicate that at that time they had asked with equal forcefulness a faster appreciation of the currency so that the market forces became apparent more quickly.

It is not strange that the results of a flexible market do not satisfy all people and sectors, any movement in any direction can be seen in the short term as a benefit to one group at the expense of another,” he said.

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